Captive Petroleum Refinery Hydrogen Generation Market size was USD 50.8 billion in 2024 and is estimated to reach USD 115.2 billion by the end of 2037, expanding at a CAGR of 6.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of captive petroleum refinery hydrogen generation will be valued at USD 52.3 billion.
Hydrogen is a vital component used in refineries to lower the sulfur content of diesel. The rise in strict sulfur content regulations worldwide is fuelling the captive production of hydrogen in petroleum refineries. For instance, the International Maritime Organization (IMO) set a limit on sulfur use in fuel oil used by ships operating outside the designated Emission Control Areas to 0.50% m/m (mass by mass) in 2020.
The continuously evolving regulations on sulfur use are anticipated to fuel the captive production of hydrogen in the coming years. According to the Fuel Cells and Hydrogen Observatory, the total captive hydrogen production capacity was approx. 9,376t per day in 2019 in European refineries. Germany (6,534t per day) holds the top position in captive hydrogen production followed by the Netherlands (4,523t per day), Poland (3,741t per day), Spain (2,402t per day), and Italy (2,386t per day). Hydrocarbon reforming technologies are widely installed in on-site/captive generation refineries owing to their production effectiveness.
Growth Drivers:
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.8% |
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Base Year Market Size (2024) |
USD 50.8 billion |
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Forecast Year Market Size (2037) |
USD 115.2 billion |
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Regional Scope |
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Process (Steam Reformer, Electrolysis)
The steam reformer segment is foreseen to account for 86.3% of the global market share by 2037. Petroleum refineries are actively adopting advanced steam reformer technologies for hydrogen production due to their effectiveness in mitigating carbon emissions and sustainable manufacturing practices. For instance, in April 2022, Wood Plc announced the launch of its new steam methane reforming technology that mitigates 95% of carbon emissions compared to conventional hydrogen plants.
Our in-depth analysis of the captive petroleum refinery hydrogen generation market includes the following segments:
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Process
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Asia Pacific Market Forecast
Asia Pacific is estimated to capture 39.4% of the revenue share through 2037 owing to the strong presence of refinery plants. The rapid growth in economic activities and increasing consumption of hydrogen power in the industrial sector including, petroleum is positively influencing the overall market growth. China, India, Japan, South Korea, Indonesia, Thailand, and Australia are some of the dominant crude oil production countries in the region, driving high demand for hydrogen production technologies.
China is the top producer of crude oil in Asia Pacific and accounted for a record 14.8 million barrels per day in 2023. The huge presence of refinery capacity in the country is augmenting the demand for captive hydrogen generation technologies. The rapid expansion of the petrochemical industry is driving strategic collaborations between domestic and international companies to boost hydrogen production capabilities.
India’s rapidly increasing population and economic growth are fuelling the demand for refined fuels, prompting refineries to enhance hydrogen production for cleaner outputs. The rising investments in the refining capacities and associated hydrogen production are also pushing the market growth in India. Jamnagar Refinery is the world’s largest oil refinery and de facto petroleum hub. With more than 1.2 million barrels per day of nominal crude processing capacity Jamnagar Refinery is significantly influencing the demand for advanced hydrogen processing technologies.
North America Market Statistics
The North America market is driven by the increasing investments in natural gas infrastructure and the strong presence of regulatory organizations such as the Environmental Protection Agency and Energy Information Administration. The technological advancements in hydrogen production technologies such as steam methane reforming and autothermal reforming are enhancing operational efficiency and lowering costs.
The U.S. captive petroleum refinery hydrogen refinery generation market is expanding due to ongoing refinery upgrades to meet strict environmental regulations and rising investments in hydrogen fuel cell vehicles for transportation. For instance, according to the Energy Information Administration, the U.S. refinery hydrogen production capacity accounted for 2,913 million cubic feet per day in January 2024.
Canada’s commitment to achieve net-zero emissions by 2050 is pushing high investments in the development of advanced hydrogen production infrastructure, pushing the overall market growth. Canada is the world’s top producer of hydrogen owing to the rich availability of feedstocks and the strong presence of renewable energy sources.
Key players in the captive petroleum refinery hydrogen generation market are employing several strategies such as new technology launches, strategic partnerships, alliances, and regional expansions to earn high profits. They are partnering with other players and technology companies to innovate hydrogen generation technologies. Industry giants are also targeting high-potential regions to tap into profitable revenue streams. Some of the key players include:
Author Credits: Dhruv Bhatia
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